Social Media Finance Influencers...Proceed with Caution

When it comes to social media, there's so much that grabs our attention and unfortunately so much that is just plain wrong. Here are a few things we have seen that sounded the alarm bells:

Myth 1: 401(k)s are a scam

Reality: A 401(k) is just a tool. It's just a section of the tax code really. Like any tool, it works best if you use it properly. For many people, it’s the most tax-efficient, employer-supported retirement vehicle available.

Myth 2: Don’t contribute because you can’t touch the money until you’re old

Reality: Yes, 401(k)s are for long-term savings — that’s the point. But “future you” is going to be grateful you prioritized tomorrow over an extra streaming subscription today.

Myth 3: Skip the 401(k) and invest somewhere else

Reality: Employer matching contributions are essentially free money. Skipping them is like saying no to a bonus just because you didn’t feel like filling out the paperwork.

Should you invest outside of a 401K? Sure, if you have the means. First identify what you are saving for. If it is for a car purchase, then a 401K isn't the solution. If it is for your future self, you'll be hard pressed to find a better place to save long term.